yahoo adds 2 board members, upping the odds of a proxy fight - digital advertising board

Yahoo Inc.
A battle has been fought for control of its board by appointing two directors, which could further incite a radical shareholder to threaten to try to expel Chief Executive Marissa Mayer from Internet operations.
The decision, announced on Thursday, adds to the possibility that unpleasant shareholder Starboard Value has nominated against competition from Yahoo's board of directors.
If the confrontation happens, it will exacerbate the challenges faced by Mayer and other members of Yahoo's board, as they try to reverse the long-term decline in the company's revenue, and find ways to avoid paying taxes on earnings it holds about $28 billion in Chinese e-commerce
Business Leader of Alibaba Group.
Starboard has been looking for seats on Yahoo's board, but it doesn't seem likely to happen as Yahoo fills two recent vacancies due to PayPal co-'s resignation
Founder Max Levchin and Charles Schwab, a pioneer in discount stock brokerage.
Yahoo based in Sunnyvale, California
Catherine Friedman, a former Morgan Stanley investment banker, and Eric Brent, chief financial officer of computer chip maker Broadcom
Fill these positions.
"It's like they're sticking out their middle finger to the starboard side," said Eric Jackson, managing director of SpringOwl Asset Management, another Yahoo shareholder who criticized Mayer's leadership.
Jackson declined to say how much stock Spring Owl had.
Starboard Value did not respond to requests for comment.
Yahoo won't be able to nominate its own candidate to take over the board until March 26.
If Starboard Value controls Yahoo's board, it may dismiss Mayer, who has been Yahoo's CEO since July 2012.
Mayer wants to implement a plan that requires Yahoo to lay off 15% jobs and reduce unprofitable services to reduce expenses and increase the company's focus on mobile devices, digital videos such as sports and finance and their most popular majors.
At the same time, Mayer is trying to get rid of a complicated situation --
This will disrupt Yahoo's Internet business and become a new company to protect Alibaba's shares from taxes.
Starboard and other shareholders want Yahoo to sell its Internet business as soon as possible.
This demand is largely based on the belief that as more digital advertising flows to Alphabet Inc. , the industry leader, Yahoo's revenue is bound to decline further
Google and Facebook
Yahoo's board said it was still supporting Ms. Mayer, but last month it also said it was willing to sell its Internet business by hiring three investment banks to ask for offers.
The most likely bidder, analysts say, is Verizon Communications. , AT&T Inc. , Comcast Corp.
A private equity firm that specializes in acquiring troubled companies.
Yahoo shares fell 69 cents to close at $32 on Thursday. 82.
The price has more than doubled since Mayer became CEO, but most of the gains come from
In her early days, Alibaba's value rose.
Since the end of 2014, Alibaba's share price has fallen by 35%, reflecting the decline in Alibaba's value and the weakening of investor confidence in Mayer.